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Lloyds set to join rivals in cutting CEO pension perks

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By Reuters
Lloyds set to join rivals in cutting CEO pension perks
FILE PHOTO: Customers use ATMs at a branch of Lloyds Bank in London, Britain, February 21, 2017. Picture taken February 21, 2017. REUTERS/Toby Melville   -   Copyright  Toby Melville(Reuters)

LONDON (Reuters) – Lloyds Banking Group <LLOY.L> is set to join rivals in cutting its chief executive’s pension allowance, after months of political and investor pressure on banks that award top bosses better perks than the rest of their employees.

Lloyds is consulting shareholders over plans to reduce Antonio Horta-Osorio’s annual pension allowance by around 220,000 pounds and at the same time hike retirement benefits for the company’s 65,000 staff.

The changes would result in Horta-Osorio and the overall workforce being offered the same pension benefit level of up to 15% of salary from July 2020, costing around 20 million pounds, a source familiar with the matter said.

HSBC, RBS and Standard Chartered have cut pension contributions for their top bosses this year.

Lloyds’ pension plans were first reported by the Financial Times.

(Reporting by Iain Withers, editing by Sinead Cruise and Dale Hudson)